Business investment boosts Australia's economy

Australia's economy grew 0.6 percent in the third-quarter, as business investment lifted despite weak household spending, reflecting the divergence between the two segments, official data showed Wednesday.

The quarterly expansion took the annual rate of growth to a healthy 2.8 percent, slightly below expectations but broadly in line with the central bank's forecasts, the Australian Bureau of Statistics (ABS) figures showed.

"The solid 0.6 percent growth outcome in the September quarter national accounts has accelerated growth from 1.9 percent to 2.8 percent through the year," Treasurer Scott Morrison told reporters in Canberra.

"This is above the OECD (Organisation for Economic Co-operation and Development) average and puts Australia back up towards the top of the pack for major advanced economies around the world." The previous quarter's reading of 0.8 percent was revised up to 0.9 percent, extending the Australian economy's uninterrupted growth to 26 years without a recession.

The ABS' chief economist Bruce Hockman said the quarterly expansion was driven by increased activity in both private business investment and public infrastructure, which "underpinned broad growth across the industries".

Seventeen out of 20 industries recorded positive growth, led by the professional, scientific and technical services, healthcare and social assistance, and manufacturing sectors.